A production possibility frontier explains ________ of Economics.

law of diminishing marginal returns

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law of variable proportions

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law of marginal utility

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water vs. diamond paradox

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Solution

The correct option is A law of diminishing marginal returns
Production possibility frontier explain the law of diminishing marginal returns as with the consumption of every additional unit of one good ,the consumer is willing to sacrifice much less and less ,in two-commodity case.That is why the production possibility curve is concave to the origin.

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